Some loan rates are increasing so borrowers warned to 'shop around'
31st July 2008
As the credit crunch puts pressure on borrowers to find ways of saving money, an independent financial advice site has advised consumers that taking out loans may help but warns that rates are rising.
According to Moneyfacts.co.uk, consolidating debts by taking out a single loan provides consumers with an easy way to reduce monthly outgoings, but they need to make sure they "shop around" to make the most of their savings.
Esther James, analyst at Moneyfacts.co.uk, explained: "Anyone looking to consolidate their debts needs to make sure they shop around. Remember that if you do opt for payment protection insurance, the lowest rate doesn't always equal the cheapest loan."
Ms James also advised that those who choose to take out personal loans should carefully consider how much they take out. She gives the example of one lender whose rates were considerably more if they took out a loan for £4,950 as opposed to £5,000.